Silver extended its new year rally on Thursday, climbing for a third consecutive day, as the dollar weakened against a basket of other major currencies.

Silver for March delivery rose 6 cents, or 0.4%, to $16.62 a troy ounce at 7:49 am ET. The metal has gained 4% in the holiday shortened week is trading at its highest level since December 14.

February gold futures surged to one-month highs on Thursday, climbing $8.70, or 0.8%, to $1,173.90 a troy ounce. That was also bullion’s third consecutive gain.

Precious metals held their ground on Wednesday after the Federal Reserve’s December meeting minutes showed a growing likelihood that interest rates may rise faster than expected on account of stronger inflation. Higher interest rates are generally viewed as a negative for dollar-denominated precious metals.

The US dollar held lower after the minutes were released, and extended its losses Thursday morning. The dollar index, a measure of the greenback against a basket of six other major currencies, fell 0.5% to 102.23.

In economic data, Eurozone producer inflation rose faster than expected in November, offering further evidence that record stimulus by the European Central Bank (ECB) was beginning to have its desired effect. The producer price index rose 0.3% month-on-month and 0.1% compared to a year ago. That was the first annual gain since mid-2013.

On Wednesday, Eurostat reported that Eurozone consumer inflation rose 1.1% in the 12 months through December.

Source: Economic Calendar